Life Insurance If You Have An Existing Health Condition

The National Funeral Directors Association reports the average funeral cost is nearly $8,000.1

Of course you don’t want your spouse or family left with unpaid bills when you are gone.

But here is the problem.2

The average American family has $3,800 in the bank.25% of households have no savings whatsoever.

If the average American family has $3,800 in the bank, paying for final expenses such as the funeral can create a

large problem for your spouse or family.

When cash in the bank is short, the obvious solution is life insurance.

However, in a recent study conducted by LIMRA3 the number of individuals owning life insurance is at a 50-year low.3

Only 44% percent of U.S. households have individual life insurance.3 So 56% of us have no individual life insurance.

The need is apparent so why don’t more Americans own enough life insurance?

One reason is the common perception that if you have an existing health condition you will not qualify for life insurance.

But that may not be true.

A few insurance companies specialize in life insurance for people who have not been blessed with great health.

Typically these policies are approved without a medical exam. The application process is very quick; usually a short application and a ten minute confirmation phone call.

You may qualify even if you have been turned down by another insurance company.

What health conditions might be acceptable? Here is a partial list:

ALS (Lou Gehrig’s Disease)

Aneurysm

Bipolar Disorder

Brain Tumor

Cancer

Cerebral Palsy

Cirrhosis

Colitis

COPD

Crohn’s

Declined by other companies. You have been declined for coverage by a life insurance company

Diabetes even if you use insulin or have complications

Drug/Alcohol Abuse

Emphysema if you do not require oxygen

Epilepsy

Hazardous Activities or Hobbies

Heart, Artery, Circulatory Disease

Hemophilia

Home Health Care if you are not confined to bed or receiving hospice care

Liver Disease such as chronic hepatitis or cirrhosis

Lupus

Medical Tests recommended by your doctor but not completed

Multiple Sclerosis

Muscular Dystrophy

Neurological disorders

Parkinson’s

Schizophrenia

Sickle Cell Anemia

Transplant

Wheelchair use

Depending on your particular health history, your policy may have a level death benefit or a modified or graded death benefit. Modified and graded death benefits are limited in the first two or three policy years. Thereafter the full death benefit would be paid. For an accidental death the full death benefit is paid from day one.

Not all applications are approved but there is no cost to apply. If you need life insurance, you have nothing to lose by giving it a try.

There are some medical conditions that do make it less likely to qualify.

You are currently hospitalized

You are currently in a nursing home

You are receiving hospice care or have been diagnosed as terminally ill

You use oxygen

You have been diagnosed with Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex (ARC)

But if you cannot qualify for the life insurance described above, there is still hope.

A handful of insurance companies sell guaranteed issue life insurance. NO QUESTIONS ASKED.

Yes, no questions asked. If you want it you can have it.

Guaranteed issue life insurance will have a graded or modified death benefit. For the first three years the death benefit is limited. Starting in the fourth year the full death benefit would be paid. As described above, the full death benefit is paid from day one for accidental death.